Question 3 A recession is it real GDP declines for 2 consecutive months. Oreal GDP declines for 2 consecutive quarters. real GDP declines on and off for two years. Oreal GDP increases for two consecut

Miranda's new entrepreneurial company which is characterized as being creative, making innovative products, and being adaptable in the marketplace is most likely an adhocracy. Option (b)

An adhocracy is a type of organizational structure that is highly flexible and adaptable, and it is known for its ability to innovate and respond quickly to changing market conditions.

Adhocracies are often found in fast-paced and creative industries, such as technology or design. In contrast, a hierarchical structure emphasizes clear lines of authority and decision-making, a clan structure emphasizes collaboration and shared values, and a market structure emphasizes competition and results. Therefore, Miranda's company appears to fit the characteristics of an adhocracy.

Learn more about hierarchical structure

https://brainly.com/question/24232447

#SPJ4

The government's budget surplus would be $40 per year ($80 tax revenue minus $40 government spending).

In the given scenario, we have:

Real GDP = $800 per year
Consumption = $560 per year
Tax revenue = $80 per year
Government spending (initially) = $120 per year
Government spending (after the change) = $80 per year

To calculate the government's budget deficit or surplus (public saving), we can use the following formula:

Public saving = Tax revenue - Government spending

Using the new information with the reduced government spending:

Public saving = $80 - $80 = $0

So, with the new government spending of $80 per year, the country's government has a balanced budget, neither a deficit nor a surplus. The public saving is equal to $0.

Learn more about Real GDP here: brainly.com/question/30737857

#SPJ11

Rapid urban growth and the creation of slum districts can indeed have significant environmental impacts that may be unsustainable in the long run.

As more people move into cities and demand for housing and infrastructure increases, the strain on natural resources and ecosystems can increase, leading to issues such as air and water pollution, deforestation, and loss of biodiversity. Moreover, slum districts are often characterized by poor living conditions, inadequate sanitation, and a lack of access to basic services such as clean water and waste management.

These issues can contribute to health problems for residents, as well as create environmental challenges such as pollution and waste. The burden of coping with these problems often falls on the national economy, as governments may need to invest in infrastructure, social programs, and environmental initiatives to mitigate the negative impacts of rapid urban growth and slum districts. These investments can be costly and may divert resources away from other important areas such as education, healthcare, and economic development.

Learn more about urban growth at

brainly.com/question/11934123

#SPJ4

In matching funds, as Maisie is discussing, her company makes a contribution to her retirement account that is equal to the one she makes.

funding matches. a confirmed cash contribution or financial commitments from approved sources, free of any conflicts of interest, that are used for approved project purposes during the grant financing period.

The non-federal portion of the total project expenditures that a grantee must contribute in order to fulfill the objectives of the award is known as a match for a federal grant. The program RFP should be consulted because the needed match percentage, sources of match, and other conditions differ from program to program.

To know more about  matching funds visit:

https://brainly.com/question/29560628

#SPJ1

Ethical relativists would likely reject ethical subjectivism because they believe that moral beliefs and values are relative to a specific culture or society. They argue that there are no universal moral principles that apply to all people in all circumstances. Therefore, ethical relativists would argue that moral judgments are not merely expressions of individual feelings or attitudes, but rather are shaped by the cultural norms and values of the society in which they are made.

In reply to the ethical subjectivist, it can be argued that there are good reasons to believe in the existence of objective moral values and principles that apply universally. For example, many people believe that it is always wrong to torture innocent children, regardless of cultural or societal norms. Additionally, ethical subjectivism fails to provide a coherent account of moral disagreement. If moral judgments are simply expressions of individual attitudes and feelings, how can we account for the fact that people often disagree about moral issues? A more plausible view is that moral disagreements are often based on genuine differences in beliefs about what is objectively right or wrong.

To know more about MORAL BELIEF click this link-

brainly.com/question/14958817

#SPJ11

High inflation rates and rising prices would make the Federal Reserve most likely to pursue contractionary monetary policy under these circumstances. Here option A is the correct answer.

Contractionary monetary policy involves the Federal Reserve taking actions to decrease the money supply and increase interest rates. This policy is typically pursued when the economy is overheating and inflation is a concern. By reducing the money supply, the Federal Reserve can make it more expensive for individuals and businesses to borrow money, which can slow down spending and reduce inflationary pressures.

Slow economic growth and high unemployment are typically addressed through expansionary monetary policy, which involves increasing the money supply and lowering interest rates to encourage borrowing and spending.

Low-interest rates and a weak currency may be addressed through expansionary monetary policy as well to stimulate economic growth. Increased government spending and higher deficits are usually addressed through fiscal policy, which involves changes to government spending and taxation.

To learn more about monetary policy

https://brainly.com/question/28199887

#SPJ4

Complete question:

Which of the following circumstances would the Federal Reserve be MOST likely to pursue a contractionary monetary policy?

a. High inflation rates and rising prices.

b. Slow economic growth and high unemployment.

c. Low interest rates and a weak currency.

d. Increased government spending and higher deficits.

The AMPS model (Analysis, Modeling, Predictions, and Scenarios) is an effective tool for managers to identify future opportunities and risks using big data.

With the McKinsey report estimating that big data could generate up to $3 trillion in value per year in just a subset of industries impacted, it is imperative for managers to utilize data analytics to gain insights that can help their organizations stay competitive.

In the analysis phase, the can use big data analytics tools to investigate anomalies and identify patterns that may have previously gone unnoticed. For example, by analyzing customer behavior, the manager may discover that customers tend to buy certain products together, which can inform product bundling strategies.

In the modeling phase, the manager can create models that simulate different scenarios and predict future behavior. By using predictive modeling techniques, the manager can forecast demand, identify potential supply chain disruptions, and optimize inventory levels to minimize costs.

In the predictions phase, the manager anager can use big data analytics to forecast future trends and make informed decisions based on those predictions.

For example, by analyzing industry trends and consumer behavior, the manager may predict that a certain product will become more popular in the coming years and adjust their production accordingly.

In the scenarios phase, the manager can use big data analytics to simulate different scenarios and evaluate the potential impact of different decisions. By analyzing different scenarios, the manager can identify potential risks and opportunities and make informed decisions that maximize the value of big data.

Overall, by using the AMPS model, managers can leverage big data to identify opportunities and mitigate risks, which can lead to significant competitive advantages and increased value for their organizations.

To know more about McKinsey refer home

https://brainly.com/question/31192821#

#SPJ11

a. Equilibrium GDP is $680.

b. The multiplier is 4.

c. The size of the budget deficit is $160.

d. The new equilibrium GDP is $500.

e. The budget surplus is $220.

a. Equilibrium GDP is found by setting Y = AD:

Y = C + I + G + XN

Y = 40 + 0.75Y + 70 + 180 + 50 - 0.25Y

Y = 340 + 0.50Y

0.50Y = 340

Y = 680

Therefore, equilibrium GDP is $680.

b. The multiplier is given by:

1 / (1 - MPC) = 1 / (1 - 0.75) = 4

Therefore, the multiplier is 4.

c. The budget function is T = 20 + 0.2Y. The size of the budget surplus or deficit is found by subtracting government spending from tax revenue:

Budget = T - G

Budget = (20 + 0.2Y) - 180

Budget = -160 + 0.2Y

Therefore, the size of the budget deficit is $160.

d. To balance the budget, we need to adjust government spending by the amount of the budget deficit, which is $160. Since the original government spending was G = 180, the new government spending level will be:

G' = G - Budget = 180 - (-160) = 340

Substituting this value for G in the equation for equilibrium GDP:

Y = C + I + G + XN

Y = 40 + 0.75Y + 70 + 340 + 50 - 0.25Y

Y = 500 + 0.50Y

0.50Y = 500

Y = 1000/2 = 500

Therefore, the new equilibrium GDP is $500.

e. At the new equilibrium, there is a budget surplus of:

Budget = T - G

Budget = (20 + 0.2Y) - 340

Budget = -320 + 0.2Y

Budget = -320 + 0.2(500)

Budget = -220

Therefore, the budget surplus is $220.

For more such questions on budget

https://brainly.com/question/24940564

#SPJ11

A binding price floor causes a shortage. A price floor is a government-mandated minimum price for a good or service.

When the price floor is set above the equilibrium price, it is binding, meaning that the price floor cannot be legally undercut. When the government sets a binding price floor, producers have an incentive to sell their product for the higher price, but consumers may not be willing to buy it at that price.

This creates a shortage in the market, meaning that the quantity demanded of the good or service is higher than the quantity supplied. This shortage leads to increased competition among consumers for the limited supply, which can cause prices to rise above the price floor.

In summary, a binding price floor causes a shortage, as the quantity demanded is higher than the quantity supplied at the higher price.

Know more about Equilibrium price here

https://brainly.com/question/28527601#

#SPJ11

The history of partnering between practical solutions and other consulting firms exemplifies the concept of collaboration in the business world. By working together, these firms are able to combine their expertise and resources to provide comprehensive and creative solutions for companies with personnel problems.

This approach allows practical solutions to offer a wider range of services to their clients and helps to establish them as a trusted and reliable partner in the industry. Additionally, this collaborative approach can also lead to increased efficiency and cost savings, as the firms are able to share resources and avoid duplicating efforts. Overall, the history of partnering for practical solutions highlights the benefits of collaboration in the business world and the importance of building strong relationships with other professionals in your industry.

Learn more about reliable partner here:

https://brainly.com/question/28180402

#SPJ11

To calculate the variance and standard deviation of Mega Corporation's returns, we need to use the following formulas:

Variance (im) = expected value of (m-rm)2

Standard deviation of r. = square root of variance(rm)

Where:
m = the return for each year
rm = the average return for the three years

Using the given returns of 7%, 13%, and 10%, we can calculate the average return:

rm = (7% + 13% + 10%) / 3 = 10%

Now we can calculate the variance:

Variance (im) = [(7%-10%)2 + (13%-10%)2 + (10%-10%)2] / 3
Variance (im) = [9 + 9 + 0] / 3
Variance (im) = 6

Finally, we can calculate the standard deviation:

Standard deviation of r. = square root of variance(rm)
Standard deviation of r. = square root of 6
Standard deviation of r. = 2.45%

Therefore, the answer is B) 6.00 and 2.45 percent.

Learn more about standard deviation at https://brainly.com/question/17226236

#SPJ11

If Eva won't tow the cars of Dave's clients who park in Eva's lot, David gives Eva a discount on purchases from Dave's business. Under no circumstances is Dave's discount adequate consideration. Option d is Correct.

The parking lots for Eva's Yarn Store and Dave's Hobby Town are next to one other. In this case, a "bribe" or "kickback," or illicit contract, is in play. Eva's property rights are effectively being ignored in return for a benefit from Dave (a discount on purchases) (towing cars parked in her lot without permission).

Due to its disregard for the idea of fair competition and violation of public policy, this kind of contract is unlawful and unenforceable. Dave's discount is therefore ineligible to be considered adequate consideration under the law. Option d is Correct.

Learn more about discount visit: brainly.com/question/28420607

#SPJ4

General Electric (GE) is shrinking due to restructuring its operations and selling off some of its business lines. The company has shed 30,000 workers, with most of the decline coming from its troubled power business.

General Electric (GE) is also cutting jobs from corporate functions and headquarters. This restructuring is due to the need to lower debt levels, as GE ended 2018 with $110 billion in total borrowings, down from $134.6 billion a year ago.

The company aims to strengthen its businesses, starting with the power division, and create value by executing its plan. The job cuts and restructuring are expected to continue, with the recent sale of its transportation division and part of its healthcare division likely to result in further job losses.

Learn more about General Electric:

brainly.com/question/13397492

#SPJ11

Generating brand-new ideas is necessary for achieving innovation.True

Generating new ideas is essential for achieving innovation. Innovation is the process of developing and implementing new ideas to improve products, services, or processes. Without new ideas, it is impossible to achieve innovation.

New ideas can come from many sources, such as research, customer feedback, brainstorming, and experimentation. Generating new ideas is not only important for creating innovative products and services, but also for staying competitive in today's rapidly changing business environment. Companies that continuously generate new ideas and implement them successfully are more likely to grow and succeed than those that do not.

In summary, generating brand new ideas is crucial for achieving innovation, and it is a necessary component of a successful business strategy.

Learn more about Generating brand

https://brainly.com/question/28482549

#SPJ4

Yes, a credit counseling organization typically provides credit management classes and helps you devise a credit management plan.

Credit counseling organizations are non-profit organizations that offer a variety of services to help consumers manage their credit and debt.

One of the primary services offered by credit counseling organizations is credit counseling, which typically involves a one-on-one session with a credit counselor to review your credit report, identify areas where you can improve your credit score, and develop a personalized credit management plan.

Credit management classes may also be offered by credit counseling organizations to help you learn how to manage your finances better, understand your credit rights, and learn how to budget and save money. These classes may be offered in person or online and may be available for a fee or free of charge, depending on the organization.

In addition to credit counseling and credit management classes, credit counseling organizations may also offer debt management plans, which involve working with your creditors to negotiate lower interest rates and monthly payments to help you pay off your debts over time.

Overall, credit counseling organizations can be a valuable resource for individuals looking to manage their credit and debt more effectively.

To know more about credit counselling refer to-

https://brainly.com/question/30764935

#SPJ11

The ability to translate features into benefits is a crucial skill that sets successful relationship salespeople apart from their peers. Oscar's mastery of this skill demonstrates his ability to identify and articulate the ways in which his product's features can solve his customers' pain points and meet their needs.

By emphasizing the benefits of his product rather than simply listing its features, Oscar is able to establish a more meaningful connection with his customers. He can demonstrate the tangible value that his product offers and show customers how it can make their lives easier or improve their business operations. This approach is more persuasive and effective than simply listing a product's features without explaining how they can benefit the customer. Overall, Oscar's ability to transform features into benefits is a key component of his success as a relationship salesperson. By identifying and articulating the value that his product can bring to his customers, he is able to establish trust, build rapport, and close deals. This skill is an essential tool for any salesperson looking to build lasting relationships with their customers and achieve long-term success in their role.

Learn more about customers here

https://brainly.com/question/25726638

#SPJ11

Based on the limited information provided in the question, it would be expected for the small country used as the video example to export bananas and import rice

The concept of comparative advantage suggests that different countries or regions have different abilities to produce goods and services at a lower opportunity cost. This means that countries can benefit from trading with each other by specializing in the production of goods they can produce at a lower cost, and importing goods they cannot produce as efficiently. In the case of the small country used as the video example, it is likely that the country has a comparative advantage in producing bananas due to favorable climate conditions, while rice production may not be as efficient due to factors such as limited arable land or unfavorable climate. As a result, the country would benefit from exporting bananas and importing rice to meet its domestic needs. This allows the country to allocate its resources more efficiently and maximize its overall welfare

Learn more about welfare here:

https://brainly.com/question/28158367

#SPJ11

Conditions for rural development are;

Land reform is a process of restructuring the land tenure system to ensure equitable distribution of land, enhance land productivity, and improve rural livelihoods.

Conditions for Rural Development:

Access to Basic Infrastructure: Access to basic infrastructure such as roads, electricity, clean water, and sanitation facilities is necessary for rural development.

This will improve the transportation of goods and people, and enhance the quality of life for rural dwellers.

Access to Credit: Access to affordable credit is essential to support agricultural activities and small business development in rural areas.

It will enable farmers to invest in their farms, purchase modern equipment, and improve productivity.

Access to Education: Education is critical for rural development. It will help to reduce poverty, promote innovation, and provide opportunities for young people to acquire knowledge and skills that will enable them to engage in productive economic activities.

Conclusions:

Investment in rural development is key to addressing poverty, inequality, and unemployment in rural areas.

Collaboration between governments, private sector, and civil society is necessary for sustainable rural development.

Rural development policies should be context-specific and based on participatory planning and community engagement.

Land Reform:

Land reform is a process of restructuring the land tenure system to ensure equitable distribution of land, enhance land productivity, and improve rural livelihoods.

It involves policies and programs that aim to address issues of land ownership, land access, and land use rights. Land reform can include measures such as land redistribution, land restitution, land tenure regularization, and land administration reform.

The objectives of land reform include promoting social justice, reducing poverty, enhancing food security, and promoting sustainable land use.

Learn more about Land reform.

brainly.com/question/11361484

#SPJ11

The tendency for minding other people's business was a time-honored tradition among the people of Salem, Massachusetts. The term that fills the blank in the question is "tendency."

For more such question on tendency

https://brainly.com/question/28346592

#SPJ11

Paying interest on excess reserves held by banks would increase the incentive for banks to hold onto these reserves rather than lending them out, as they can now earn interest on these funds.

This would result in an increase in the excess reserves ratio, meaning that banks would hold a larger proportion of their deposits as reserves rather than lending them out.

As a result, the money multiplier process would be reduced, as banks would be lending out a smaller proportion of their deposits. This would ultimately lead to a decrease in the money supply in the United States.

Therefore, holding the monetary base constant, paying interest on reserves should decrease the money multiplier and the money supply, while increasing the excess reserves ratio.

To know more about money multiplier  click on below link :

https://brainly.com/question/28385921#

#SPJ11

To calculate the private saving of this economy, we need to use the formula:
Private saving = Household income - Household consumption - Tax paid by household

Substituting the given values, we get:
Private saving = $250 - $100 - $55
Private saving = $95
Therefore, the answer is not one of the given options. The correct answer is $95.

To calculate the private saving of this economy, you need to consider household income, transfer payments, household consumption, and tax paid by households. Here's the formula:

Private Saving = (Household Income + Transfer Payments) - (Household Consumption + Tax Paid by Household)
Using the given values:
Private Saving = ($250 + $75) - ($100 + $55) = $325 - $155 = $170
The private saving of this economy is $170 (Option A).

You can read more about consumption at https://brainly.com/question/14786578

#SPJ11

(a) Case A FIFO Cost of Goods Sold: $447,320

(b) Case B LIFO Cost of Goods Sold: $479,460

To calculate the cost of goods sold under FIFO and LIFO methods, we need to determine the cost of goods available for sale and the ending inventory. The difference between these two amounts is the cost of goods sold.

Under FIFO, we assume that the first units purchased are the first units sold. Therefore, we use the cost of the April 11 purchase of 8,990 units at $15 and the remaining 1,970 units from the June 1 purchase at $20 to calculate cost of goods sold. The ending inventory is the remaining 7,010 units from the June 1 purchase at $20. Therefore, the FIFO cost of goods sold is:

2,860 units x $14 (inventory from prior year) = $40,040

8,990 units x $15 (April 11 purchase) = $134,850

1,970 units x $20 (portion of June 1 purchase) = $39,400

Total cost of goods available for sale = $214,290

Ending inventory = 7,010 units x $20 = $140,200

Cost of goods sold = $214,290 - $140,200 = $74,090 + $373,230 = $447,320

Under LIFO, we assume that the last units purchased are the first units sold. Therefore, we use the cost of the remaining 7,010 units from the June 1 purchase at $20 and the remaining 1,970 units from the April 11 purchase at $15 to calculate cost of goods sold. The ending inventory is the 8,990 units from the April 11 purchase at $15. Therefore, the LIFO cost of goods sold is:

2,860 units x $14 (inventory from prior year) = $40,040

7,010 units x $20 (portion of June 1 purchase) = $140,200

1,970 units x $15 (portion of April 11 purchase) = $29,550

Total cost of goods available for sale = $209,790

Ending inventory = 8,990 units x $15 = $134,850

Cost of goods sold = $209,790 - $134,850 = $74,940 + $404,520 = $479,460

For more questions like LIFO, click the link below:

https://brainly.com/question/17236535

#SPJ11

A cost that changes in proportion to changes in the activity output volume is called a variable cost. Option B

Variable costs are expenses that fluctuate depending on the level of production or sales of a business. These costs are directly tied to the volume of output and will increase or decrease in proportion to the changes in the level of activity. For instance, if a business produces more units of a product, the variable cost of raw materials will increase accordingly.

Variable costs are an important consideration for businesses because they can have a significant impact on profit margins. Companies need to carefully monitor variable costs to ensure they remain in line with revenues and avoid over-spending. Variable costs can be controlled by managing production levels and negotiating better prices with suppliers.

In contrast, fixed costs are expenses that do not change with the level of production or sales. Examples of fixed costs include rent, salaries, and insurance. Mixed costs are a combination of fixed and variable costs, while step-wise costs change only when a certain level of production is reached, and curvilinear costs change in a non-linear fashion.

In conclusion, understanding the different types of costs is important for businesses to make informed decisions about pricing, production levels, and overall financial strategy. Option B is correct.

For more such questions on  output volume visit:

https://brainly.com/question/29057786

#SPJ11

The fact that producers prefer to produce in large quantities while consumers prefer to buy in small quantities results in a phenomenon known as economies of scale.

Producers can take advantage of economies of scale by producing large quantities of goods, which lowers the cost of production per unit. However, this also means that the cost of producing smaller quantities is higher, making it less attractive for consumers to buy in smaller quantities.

This can lead to a mismatch between supply and demand, which can result in excess inventory for producers and limited availability of products for consumers. As a result, businesses must carefully balance economies of scale with consumer demand to maintain profitability.

Learn more about economies of scale

https://brainly.com/question/27961434

#SPJ4

Preferred stockholders have a higher priority in receiving dividends over common stockholders.

Preferred stockholders have a higher priority in receiving dividends over common stockholders.

Generally, preferred stocks have a fixed dividend rate, which means that the company must pay out a set amount to preferred shareholders before paying dividends to common shareholders.

If the company cannot pay the full dividend amount. preferred stockholders are entitled to receive their dividend before any dividend is paid to common stockholders.

Companies can transfer profits to shareholders by paying dividends, although not all businesses do so. Some businesses opt to keep their profits in order to reinvest in possibilities for growth

If dividends are paid, the company will announce the amount and pay all stockholders who owned the shares as of the ex-date on the next payment date. Investors who receive dividends have the option of keeping the money in cash or reinvesting it to buy more shares.

Investors can benefit from a number of advantages with a dividend reinvestment plan (DRIP). Instead of receiving the dividend payment in cash and then using the cash to buy more shares, automatic dividend reinvestment makes it easier for investors who wish to simply increase their present equity holdings with any excess income from dividend payments. DRIPs run by businesses typically don't charge commissions because they don't use brokers.

To learn more about   stockholders  visit:

https://brainly.com/question/29728929

#SPJ4

Under GAAP, the amount to be reported as merchandise inventory on the Balance Sheet is $70.

Under GAAP (Generally Accepted Accounting Principles), the amount reported as merchandise inventory on the Balance Sheet (BS) of a company follows the Lower of Cost or Market (LCM) rule.

This rule requires the company to report inventory at the lower value between its original cost and the current replacement cost. In your case, the original cost of an item is $85, and the current replacement cost is $70.

Following the LCM rule, the company would report the merchandise inventory at the lower value, which is $70.

Learn more about LCM at

https://brainly.com/question/31018428

#SPJ11

In the consumption function C = Co + MPC(Yd), the Co term is usually defined as a. autonomous consumption. This represents the consumption level when disposable income (Yd) is zero, and it is not influenced by changes in income.

The Co term in the consumption function C = Co + MPC(Yd) is usually defined as autonomous consumption, which represents the amount of consumption that is independent of disposable income. It is also sometimes referred to as "point-zero consumption" or "mandatory consumption." The MPC term, on the other hand, represents the marginal propensity to consume, which is the additional amount of consumption that is generated by each additional dollar of disposable income.

Learn more about consumption here: brainly.com/question/14933604

#SPJ11

It is difficult to determine the exact inflation rate during hyperinflation because it is often associated with a breakdown in the economy's normal functioning, including changes in the velocity of money, making it difficult to make precise predictions.

When the central bank purchases government securities, it injects money into the economy, increasing the money supply. This can lead to an increase in inflation, which can cause the Canadian dollar to appreciate in value. This, in turn, makes Canadian exports more expensive for foreign buyers, which can hurt export industries.

Learn more about inflation: https://brainly.com/question/30112292

#SPJ11

In the short run, the marginal product of labor (MPL) D. will eventually fall.

The marginal product of labor refers to the additional output generated by employing an extra unit of labor, keeping all other factors constant.  In the beginning, as a firm adds more labor, it may experience increasing marginal returns, which means that each additional worker contributes more to the output than the previous one. This can be attributed to factors such as specialization and division of labor, which enhance efficiency.

However, after a certain point, the law of diminishing marginal returns comes into play. This means that as more labor is added, the marginal product of labor starts to decrease. The reason behind this is that there are limited resources and fixed factors, such as capital and land, available in the short run.

In summary, the marginal product of labor does not always increase or remain constant. In the short run, it will initially increase due to factors like specialization and division of labor but will eventually fall due to the law of diminishing marginal returns and the limited availability of fixed factors. Therefore the correct option is D

Know more about   law of diminishing marginal returns here:

https://brainly.com/question/19070161

#SPJ11

The economic advisors likely replied to the owners' concerns by explaining the concept of price elasticity of demand and its relationship with total revenue. Price elasticity of demand measures the sensitivity of the quantity demanded of a good or service to a change in its price.

In the context of the Cowtown Hotel, it relates to how a change in room prices affects the quantity of hotel rooms demanded by customers.

The advisors would have suggested increasing prices because they believe that the demand for hotel rooms at the Cowtown Hotel is inelastic. Inelastic demand occurs when the percentage change in quantity demanded is less than the percentage change in price. In such a case, an increase in price would lead to a smaller decrease in the quantity demanded, resulting in higher total revenue for the hotel.

Since the Cowtown Hotel is the only first-class hotel in Fort Worth, it may have limited substitutes or competition. Customers who are seeking a first-class hotel experience might still book a room at the hotel despite the higher prices, due to the lack of comparable alternatives in the area. This lack of close substitutes contributes to the inelastic demand for the hotel rooms.

for more such questions on elasticity

https://brainly.com/question/29615048

#SPJ11